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Associated Press

ANCHORAGE- The Alaska Supreme Court wasted little time in ruling that a referendum effort launched by city unions over revised labor laws can move forward.

Justices Friday upheld a Superior Court ruling backing the legitimacy of the referendum.

The city appealed but unsuccessfully argued Wednesday that the labor law was too complex for voters. The city also said that it pertained to city finances and therefore was off-limits for a referendum.

The Anchorage Assembly approved the law in March. The change limits raises to the rate of inflation plus 1 percent, eliminates binding arbitration and restricts unions' right to strike.

Critics in September turned in signatures to put the measure to a public vote.